Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB), the FMCG giant responsible for the majority of the average Brit’s cleaning cupboard, has declared a sweeping reorganisation of its business that will see it dispose of ‘non-core’ brands.
The FTSE 100-listed conglomerate plans to get rid of Air Wick, Mortein, Calgon, Cillit Bang and other non-core products from its home care range.
Reckitt is also mulling the disposal of its Mead Johnson Nutrition business, housing brands Enfamil and Nutramigen.
It plans to make a “sharper, simpler Reckitt” focusing on high-margin ‘Powerbrands’ including Strepsils, Gaviscon, Nurofen, Dettol, Finish, Durex and others in the consumer health and hygiene business.
Job cuts at the management layers are expected to coincide with this dramatic shake-up.
In a press release detailing the reorganisation, Reckitt said: “Reckitt will move to a simpler and more effective organisation with fewer management layers and reduced duplication to accelerate speed of decision making and improve efficiency.”
The Global Business Unit will be removed entirely.
Reckitt did not disclose how many jobs will be lost as a result of the reorganisations, but Proactive has reached out for a comment.
The company also published its first half results today, which underscored its difficulty in maintaining positive growth.
Net revenues fell 3.7% year on year decline and operating profit margins tightened by 20 basis points.